From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers' exploitation to global consumers - June 2021
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June 2021 From farms to large retailers, Repórter Brasil shows the tortuous path linking coffee workers’ exploitation to global consumers . 01 .
MONITOR #10 STAFF EDITOR Marcel Gomes “Certified coffee, rightless workers 2” RESEARCH AND TEXT Poliana Dallabrida (Field research and reporting) André Campos (Supply chain assessment) PHOTOS Marcos Wieske GRAPHIC DESIGN AND LAYOUT Elaine Almeida REPÓRTER BRASIL ORGANIZATION OF COMMUNICATION AND SOCIAL PROJECTS GENERAL COORDINATOR Leonardo Sakamoto EXECUTIVE SECRETARY Marcel Gomes CONTACTS FINANCIAL COORDINATOR biobr@reporterbrasil.org.br Marta Santana ONGReporterBrasil ASSISTANT COORDINATOR Marília Ramos @reporterb ADDRESS (55 11) 2506-6570 Rua Bruxelas, 169. (55 11) 2506-6562 São Paulo - SP - Brasil (55 11) 2506-6576 CEP 01259-020 (55 11) 2506-6574 . 02 .
CONTENTS INTRODUCTION__________________________________________________________________________04 AN OVERVIEW OF THE INDUSTRY___________________________________________________________04 Background_____________________________________________________________________________04 Industry figures_______________________________________________________________________04 Production hubs______________________________________________________________________05 Export figures________________________________________________________________________05 Coffee supply and its connection with global markets______________________________________05 WORKING CONDITIONS_________________________________________________________________06 Types of labour violations identified____________________________________________________06 Slave labour_________________________________________________________________________07 Labour violations on certified properties________________________________________________08 Informal labour_______________________________________________________________________08 Labour law fraud_____________________________________________________________________10 Precarious accommodation_____________________________________________________________11 Disregard for agrochemical application rules______________________________________________12 Budget cuts compromises enforcement__________________________________________________13 Coffee harvesting in the context of Covid-19________________________________________________14 Impacts of labour reform______________________________________________________________15 Wages do not provide for living income______________________________________________16 CASE STUDIES_________________________________________________________________________17 CASE 1 - Córrego da Prata Farm__________________________________________________________17 CASE 2 - The Castelhana and Alvorada do Canta Galo Farms___________________________________19 CASE 3 - Cedro II Farm__________________________________________________________________20 CASE 4 - Terra Forte Group______________________________________________________________20 ROASTERS________________________________________________________________________23 NKG________________________________________________________________________________23 Melitta______________________________________________________________________________23 UCC________________________________________________________________________________23 Sucafina_____________________________________________________________________________24 RETAILERS____________________________________________________________________________24 Carrefour____________________________________________________________________________24 Coop_______________________________________________________________________________24 Jumbo______________________________________________________________________________25 Lidl________________________________________________________________________________25 Metro______________________________________________________________________________25 Tesco_______________________________________________________________________________25 FINAL REMARKS________________________________________________________________________26 Using the “dirty list” is only part of the answer______________________________________________26 Certification is flawed and needs to evolve_________________________________________________26 Complying with the law does not guarantee living wages____________________________________27 .3.
INTRODUCTION This report addresses labour AN OVERVIEW production, the coffee indus- and human rights violations that try collapsed. In 1929, a year affect coffee workers in Brazil, OF THE INDUSTRY marked by crisis and the crash the world’s largest producer and of the New York Stock Exchange, exporter. In addition, the inves- Brazil produced 28.9 million sa- tigation also maps connections BACKGROUND cks of coffee but exported only 14.2 million. between the product and major Brazil is the world’s largest co- Despite the crisis, Brazilian multinational companies in the ffee producer and exporter. Three production remained relevant in coffee supply chain – including, out of every five cups of coffee the world market4 – and it still is, at its final end, large European consumed in the world come despite the emergence of other retailers that use imported cof- from Brazilian farms. In 2019, the producing hubs in Latin America, fee in their private labels. country accounted for 34.7% of Africa and Asia. Part of this research is the the world’s production.1 result of a field trip to southern Minas Gerais in the second half Coffee farming in Brazil star- ted in the 18th century, with see- INDUSTRY of 2020. The report also provides dlings brought from French Guia- FIGURES updated macroeconomic data na to the state of Pará. It found about coffee produced in Brazil. ideal soil in the Southeast region In 2019, 3 million tonnes of co- and was the country’s economic ffee were produced in Brazil – or As a result of months of in- driver after the so-called Gold 50 million sacks. Of the total har- vestigation, it also points out Cycle at the turn of 19th century. vested, 2 million tonnes were of concrete examples of crimes During the period known as the arabica type, the most consu- and irregularities – including med coffee variant in the world, the Old Republic, between the slave labour – that are directly and 915.900 tonnes were of ca- late 19th century and the early or indirectly linked to the bu- 20th century, coffee was Bra- nephora, also known as conilon or siness chains of local buyers, zil’s main export product. That is robusta – widely used to produce exporters, roasters and, finally, when the country underwent its instant coffee.5 top world retailers. urbanization process, expanding Coffee plantations covered 1.8 The findings show that there rail lines and modernizing ports million hectares – 990,800 million is still a long way to go to guaran- to facilitate transportation of co- in Minas Gerais alone, followed by tee a supply chain that ensures ffee production.2 Espírito Santo, with 379.1 million decent working conditions and From 1880 to 1881, the coun- hectares. The two states are the wages for coffee workers. try produced 3.7 million 60-kilo- largest producers in Brazil. Of the gram sacks of coffee. Ten years total coffee output in 2019, 49.7% later, between 1890 and 1891, was harvested in Minas Gerais production reached 5.5 million and 26.2% in Espírito Santo, which sacks and jumped to 16.3 million produced 1.4 million and 789,600 in the 1901-1902 harvest.3 tonnes, respectively.6 With the fall in international Preliminary figures for the prices and the country’s surplus 2020 harvest show that produc- . 04 .
tion was larger than that of the previous year: between 57 and dônia, which harvested 137,100 tonnes of conilon coffee, produc- COFFEE SUPPLY 62 million sacks of coffee grown tion takes place on small proper- AND ITS on 1.88 million hectares.7 Increa- ties spread all over the state.12 13 CONNECTION se in production from one year to the other is explained by the WITH GLOBAL two-year cycle of Brazilian pro- EXPORT MARKETS duction, which alternates larger and smaller harvests. This is due FIGURES Brazil’s coffee industry inclu- to the characteristic of the coun- des 264,200 rural establishments, Coffee remains as one of the try’s plantations, which produce top Brazilian export products. of which 188,300 produce arabica in full sun and need to recover Trade in unroasted coffee ranked coffee and 75,900 work with coni- between harvest seasons. 11th among Brazilian exports lon. Arabica production in Minas in 2020, together with fuel oils Gerais concentrates most of these establishments: 119,700, accor- PRODUCTION from petroleum. This accoun- ts for 2.4% of the country’s to- ding to data from the 2017 Agri- HUBS tal foreign sales. Coffee ranks cultural Census.18 8th among agribusiness export The coffee harvested on the Of the 1.49 million tonnes of items.14 properties is passed on to pro- coffee produced in Minas Gerais Brazilian coffee exports be- ducer cooperatives, local trading in 2019, 1.47 million were of the tween January and December warehouses known as “brokers,” arabica type – which accounts for 2020 totalled US$ 4.9 billion. or coffee trading companies that 70.6% of domestic output.8 Pro- During that period, 2.3 million include multinational groups such duction hubs in the state are the tonnes of coffee were traded as Singapore-based Olam Interna- regions of Matas, Cerrado, Man- worldwide – or 39.7 million sa- tional and Germany’s Neumann tiqueira, Chapada, and Southern cks.15 Kaffee Gruppe (NKG). In the next Minas Gerais.9 As the world’s largest produ- stage, green coffee beans are sold In the same period, 81% of the cer, Brazil is followed by Vietnam to roasting and grinding industries coffee produced in Espírito San- and Colombia, with 30.7 and and to instant coffee producers.19 to was of the conilon variety. Na- 14.1 million sacks, respectively, Exports may occur in various tionwide, the state accounts for according to data from 2019. ways: directly between industries 69.8% of the production of that Brazilian production in that year and producers, sold by producer type of coffee.10 Its production was 58 million sacks of coffee.16 cooperatives, or intermediated by hubs are the state’s North region, The United States and Ger- coffee trading companies. known as Conilon Capixaba, and many are the two main destina- In the domestic market, the the southern Mountains of Espíri- tions for Brazilian coffee. They largest companies linked to the to Santo.11 account for 18.19% and 16.86% Brazilian Coffee Industry Associa- Coffee production is also re- of exports, respectively. Belgium tion, which represents roasting levant in São Paulo, Bahia and (8.24%), Italy (7.27%) and Japan and grinding industries, are 3Co- Rondônia. In 2019, the state of (5.11%) complete the list of ma- rações, Jacobs Douwe Egberts São Paulo harvested 290,400 ton- jor importers. These countries re- Brasil, Indústria de Alimentos Ma- nes. Its production was concen- ceive international shipments at ratá, Melitta do Brasil and Mitsui trated in the regions of Mogiana their ports but are not necessa- Alimentos.20 In February 2020, the and Centre-Western São Paulo. rily the final destinations for con- 3corações group acquired Mitsui In Bahia, which harvested coffee sumption of processed coffee.17 Alimentos’ roasted and ground co- on 180,200 hectares in 2019, pro- ffee division.21 duction zones are located in the Plateau and Cerrado areas. In Ron- . 05 .
OLAM facilities at São Sebastião do Paraís, MG WORKING SLAVE TYPES OF LABOUR LABOUR CONDITIONS VIOLATIONS IDENTIFIED From 2016 to 2020, 700 workers were rescued from slave labour in Employing unregis- 46 different coffee farms. In the Despite being a world referen- tered labour same period, across the country, ce, the industry is still pervaded 4,564 slave workers were rescued in all economic sectors and acti- by labour irregularities. In addi- Failing to pay legal vities. In 2019 alone, 106 workers tion, cases of slave labour are still benefits were rescued from 12 properties found virtually every year during dedicated to coffee farming. In federal government inspections, 2020, 140 workers were rescued Noncomplying with harvest after harvest. in the coffee sector. The inspection the rules for agroche- Information gathered by Re- mical use and rescue operations took place pórter Brasil shows that these on nine farms.22 cases include farmers supplying Failing to provide According to Article 149 of Bra- companies and cooperatives that Personal Protective zil’s Penal Code, slave-like labour are part of the business network Equipment (PPE) includes four elements: forced of large global retail chains. labour, debt bondage, strenuous working hours, and degrading con- Providing preca- ditions. Any one of the four ele- rious accommoda- ments is enough to configure the tion crime, whose penalties includes fi- nes and 2-8 years’ imprisonment.23 . 06 .
Larissa Goulard, network coor- had to buy everything,” he recalls. res, from Varginha (MG), took part dinator at the Reference Centre in In addition to mattresses and in two inspection operations that Human Rights in Southern Minas food, workers were forced to buy rescued workers between July and Gerais (CRDH Sul de Minas), says portable machines that help in August 2020. In one of them, the that the problem is even more se- harvesting coffee, known as der- workers had come from a poor rious than that revealed by official riçadeiras, incurring debts of R$ village near the farm. statistics on workers rescued. “Lack 2,500-R$ 3,000 before they even “Employers usually don’t care of reporting is a major obstacle to started harvesting. “Machine, about who provides the service. combat slave labour crimes. Even maintenance, gasoline. We had They just want the job done,” says so, our region has one of the hi- to buy everything. We also had to Passos. “What happens? A mid- ghest rates of slave labour in Brazil, pay for food. I wasn’t registered dleman goes to the village’s squa- mainly in coffee plantations.” either, and they had promised for- re and recruits people. He sets the In coffee farming, slave labour mal contracts,” says João*. payment for their harvest work affects especially migrants, who “The middleman himself en- and people go. It’s all informal. work during harvest season from courages the workers to buy por- When that happens, everything April to September. Coming from table harvesters and then takes already started wrong.” the state of Bahia and the Jequi- them to a store he knows, which Without labour monitoring, tinhonha Valley area in northern sells on credit,” points out labour the industry is open to child la- Minas Gerais, workers arrive in inspector Leandro Marinho. In a bour. “It happened in one of the groups, enlisted by labour mid- quick search on the internet, it is farms inspected in the presence of dlemen known as “cats.” “In these possible to find that machine for the prosecutors. There were three areas, there is less money in circu- less than R$ 700.00. “It’s a work teenagers between 14 and 15 lation and lower access to educa- tool, which should be provided to years of age,” she explains. Farm tion. People will migrate to work them, and it’s not being provided. work is considered one of the in whatever job they can find,” If employers want faster harves- worst forms of child labour, accor- says Leandro Marinho, a labour ts, they should supply the equip- ding to the International Labour inspector in Varginha (MG). ment.” Organization.24 João*, 32 years old, is an Marinho says that lack of ac- In the other operation, 13 example of a person who migrates cess to drinking water or toilets workers from towns in Bahia were to work in coffee farming every and poor accommodation cha- rescued from slave-like conditions. year. Born in Cristália, in the Jequi- racterize most rescue cases in ru- The facility adapted as accommo- tinhonha Valley, he says that this ral areas. “You’ll find permanent dation was located next to the cor- is his best source of income, since farm workers in bad houses, with ral. “Everyone was sort of huddled opportunities near his hometown accrued vacations, etc., but the up there,” she recalls. “They were are scarce. “Here, most of the jobs worst accommodations are those already highly indebted and no are in coal, and it’s very hard work, for migrant workers, who usually PPE had been provided.” so people from Cristália, Grão Mo- stay in abandoned houses. So- A new profile of harvest gol and Botumirim always work in meone just brooms it quickly and workers comes to the attention the coffee harvest in southern Mi- that’s it,” he explains. of labour inspector Leandro Ma- nas Gerais.” João* never stopped harves- rinho. In previous seasons, they He was rescued from slave-like ting coffee, even after the rescue. used to be mostly single men. labour during an inspection ope- He says conditions have changed Now, entire families started to ration in July 2018. As he recalls, little since the operation that res- work in harvest, especially young upon arriving at the property re- cued him three years ago. “Things couples. Fathers go to work while commended by another colleague remain pretty much the same in older children look after the litt- who had already worked there, the industry.” le ones and mothers cook. “They he was faced with very precarious Precarious work is not exclusi- used to pile up employees. Now, accommodation. “There was no ve to migrant labour. Labour Pro- they pile up employees and their house, there was no mattress. We secutor Letícia Moura Passos Soa- families,” Marinho observes. . 07 .
LABOUR The cases analysed by Repór- ter Brasil in 2020 also involve ow- Union leader Jorge Ferreira dos Santos explains that infor- VIOLATIONS ON ners of certified farms that supply mality takes away workers’ basic CERTIFIED coffee to retail chains in Brazil and rights. “Workers lose vacations, abroad [see more in the chapter 13th salary, paid rest periods, PROPERTIES on CASE STUDIES]. and also the possibility of reti- ring with a pension. If they have Although slave labour is com- an accident while working in co- mon on certified properties, the- se farms are not free from other INFORMAL ffee, no one is going to have that family’s back. From a more hu- labour irregularities, according to LABOUR mane point of view, such coffee labour inspector Humberto Mon- creates poverty.” teiro Casmamie, head of the Mo- Estimativas de 2014 indica- Jorge dos Santos is the lea- bile Inspection Group of the state vam qEstimates indicated that six der of the Coordination of Ru- of Minas Gerais. “Payment below out of 10 coffee workers were un- ral Employees of the State of what had been agreed, bad food, registered in 2014.26 There is no Minas Gerais (ADERE) and has no PPE and no toilets are some of recent research to confirm chan- been following the progress and the violations found in large far- ges in this scenario. The general setbacks of the state’s coffee in- ms,” he says. numbers on informal work in Bra- dustry for 14 years – especially in In December 2016, Repórter zil show that informality has been southern Minas Gerais, Brazil’s Brasil released a study on several on the rise, reaching 41.1% of the largest producing area. labour irregularities on certified employed population in 2020, or “During harvest season, you coffee farms, including unregis- 38.4 million people.27 have, say, 2,000 workers in a gi- tered workers, illegal wage dis- The share of registered sea- ven municipality. In the off-sea- counts and disregard for safety sonal workers is still small in the son, that number falls to 600 standards.25 In addition, farm ow- coffee sector. According to data workers. Both producers and ners certified by UTZ, Rainforest from 2017, only 16% of farm workers know that there is a re- Alliance and Starbucks’s C.A.F.E. workers had contracts that las- serve labour pool. Workers know Practices have been fined in re- ted up to 5.9 months, which is that the season is over, jobs are cent years for keeping workers in the duration of the coffee har- over, so they won’t run any risks slave-like conditions. vest season.28 and then they end up accepting Rural workers in a coffee farm . 08 .
the conditions imposed by em- Not even union leaders, who population of about 14,000.30 ployers,” dos Santos concludes. understand the irregularity of in- “We estimate that farm owners Unregistered labour does formal labour, escape that reali- have registered less than 10% of not occur only among harvest ty. This is the case of Roberto de seasonal workers this year,” the workers during harvest season. Souza Costa, president of the union leader says. Labourers are also hired on a dai- Union of Rural Workers of Ibira- In Ibiraci, workers are staying ly basis for different tasks in co- ci, in southern Minas Gerais. He more often in houses in town ffee plantations and are usually earns about R$ 70.00 per day rather than in farm accommoda- not registered. They are known worked. “You have no other op- tion. “Employers now avoid lea- as diaristas (day labourers) or tion. If you ask the boss to regis- ving people in the farms. Nowa- turmeiros (group workers) – in ter you, he’ll say it’s expensive days, they pile up migrants from the latter case, when the job and won’t do it,” Costa says. Bahia in houses here in town,” involves a fixed group that wan- The municipality of Ibiraci has says Eliane dos Santos, vice-pre- ders from farm to farm. had the highest number of noti- sident of the rural workers union Idomeno José de Andrade, 60 fications for slave labour since in Ibiraci. years old, has worked as a day la- the beginning of the time series bourer in Minas Gerais’s coffee in 1995 – a total of 185 cases.29 farms since 1988. However, he was Even with the pandemic, formally registered only during a some 2,000 migrant workers short period – 12 years. “Today, came to town for the 2020 cof- it’s hard for me to retire because I fee harvest. In 2019, they were wasn’t registered,” he says. 6,000 – almost half of the local Idomeno José de Andrade, coffee worker at 60 years old . 09 .
LABOUR LAW butions and the so-called Time of Service Fund (FGTS). from Adere-MG. According to reports by union FRAUD In the coffee sector, both per- leaders, labour inspectors and la- manent and seasonal workers are bour lawyers heard by Repórter Some of the labour rights gua- often registered with wages be- Brasil, it is also common for regis- ranteed by Brazilian law inclu- low what is actually paid. That is a tered employees to have accrued de maximum 44 weekly working maneuverer to reduce employers’ vacations and not be paid their hours, paid vacations, paid rest on expenses. “The worker produced31 overtime correctly. There are still Sundays, paid overtime, unem- R$ 2,000.00, but his paycheck says cases in which employers do not ployment insurance, paid sick R$ 1,045.00 [Brazil’s minimum pay their duties related to em- leave, and severance payment wage in 2020]. Then his 13th sa- ployers’ basic benefits – FGTS and in case of dismissal. Employers lary and Time of Service Fund be- social security contribution. must pay other mandatory bene- nefits will be calculated over R$ fits such as social security contri- 1,045.00,” says Jorge dos Santos, Jorge dos Santos, unionist in Minas Gerais . 10 .
PRECARIOUS Since April 2019, 49-year-old Mário* has lived with his wife in for rent but does not commit to doing the necessary mainte- ACCOMMODA- a house on a coffee farm in Je- nance on the house. When the TION suânia, southern Minas Gerais. couple moved to the farm, they The farm supplies coffee to the went two months without elec- Precarious accommoda- Regional Cooperative of Coffee tricity. “The people who used to tion is not exclusive to seasonal Farmers of the Verde River Valley live here didn’t pay their bill and workers. In some coffee farms, (Cocarive), based in Carmo de the company cut off the electri- permanent workers often live Minas. The cooperative infor- city supply. I’d ask him to leave within property boundaries. In med Repórter Brasil that it had work early to solve the problem, 2020, Repórter Brasil visited not been notified about alleged but he wouldn’t let me. It took some examples of houses where illegal practices on the property. a long time for him to solve that lack of maintenance and water The farm owner discoun- situation,” he says. shortage were constant. ts part of Mário’s wages to pay In addition to lack of electrici- were told to isolate at home. “I ty, the couple and other workers spent two days without water who live on the farm face water in that period,” he says. “When shortages, even during the pan- I went to complain, the boss got demic. In October this year, Má- mad at me and said he was going rio* and his wife were in contact to settle our accounts so we could with a person who later tested leave.” positive for Covid-19, and they . 11 .
DISREGARD FOR are applied. Camila* and the couple Ma- ded by Camila* shows a tractor spraying it on coffee trees next AGROCHEMICAL ria* and Junior* worked on the to where the group worked. “We APPLICATION same coffee farm in São Tomás used to take poison showers,” RULES de Aquino, southern Minas Ge- rais, for six, five and eight years, she recalls. Junior* was also in charge of Coffee workers from proper- respectively. They left in Fe- applying agrochemicals with a ties where labour irregularities bruary this year and now they sprayer attached to him, backpa- were found told Repórter Brasil have gone to court to be paid for ck-style. He says that headaches that they had never been provi- overtime and other labour rights were common after doing that. ded with full Personal Protective denied during that period. Des- “I used to work with the Roun- Equipment (PPE). pite being permanent workers, dup poison sprayer.32 Sometimes During harvest, PPE includes they were never registered. it would break and I’d go to the gloves, boots and leg protectors They had to bring their own supervisor and say: ‘Look, this to prevent snake bites. In the rest work tools, food and water from sprayer is not working.’ It was as of the year, lack of equipment home. In addition, they were of- good as saying nothing. He just compromises workers’ health, ten exposed to poisons applied wouldn’t change it.” especially when agrochemicals to the plantation. A video recor- Fertilizer application by tractor . 12 .
BUDGET CUTS reduced the money for inspec- tions against slave labour by up to situation is critical,” he says. “In January 2007, when I joined the COMPROMISES 70%.33 The Bolsonaro administra- agency, we had 14 inspectors for ENFORCEMENT tion imposed the worst cut since 47 towns. We are now eight ins- 2013, when the time series began. pectors for 52 cities. And the bu- Recent cuts on the budget of For 2021, R$ 24.1 million were dget for displacements is getting the Ministry of Economy’s Labour earmarked for operations to en- smaller every year.” Inspection Secretariat (SIT) and re- force occupational health and sa- Even with budget cuts and the duction in the number of labour ins- fety rules and labour benefits, and pandemic, 2020 saw a slight in- pectors for field inspections com- for combating slave labour.34 crease in the number of workers promise the fight against labour In Minas Gerais, labour inspec- rescued from coffee farms com- violations and slave labour in Brazil. tor Leandro Marinho says that the pared to the same period in 2019: The scenario has been wor- agency is understaffed and cannot 140 people were rescued in 2020, sening since 2017 under Michel investigate all complaints. “Regar- over 106 in the previous year.35 Temer’s administration, which ding the number of inspectors, the Federal labour inspector Leandro Marinho . 13 .
COFFEE HARVES- nas Gerais enacted a specific law pany (Emater-MG) published a TING IN THE on coffee farms, which provides booklet with guidelines for pre- CONTEXT OF for the adoption of measures to venting the new coronavirus COVID-19 protect harvest workers.36 The during harvest season.37 state-owned Technical Assistan- In May 2020, the state of Mi ce and Rural Extension Com Photo of workers at rest without a mask “None of that was observed in the inspections I took part,” says Varginha Labour Prosecutor Le- tícia Moura Passos Soares. “No- body was wearing masks. There was no distancing, buses were not being cleaned. Absolutely no- thing. No control whatsoever, no guidance.” Labour Prosecutor Letícia Moura Passos Soares . 14 .
IMPACTS OF LABOUR REFORM Drastic drop in union funds The end of mandatory union contributions, which came into force with the labour reform approved in November 2017, profoundly changed union organization in Brazil, especially in rural areas. Between 2017 and 2019, revenues from the so-called union tax are estimated to have fallen by 96%.91 “We had eight unions in this area, but only two are still ope- rating, and they are falling apart. This one won’t last six more months,” says Izidio Barbosa dos Santos, president of the Union of Rural Workers of São Sebastião do Paraíso (MG). “At some point the union used to receive R$ 40,000 a year in contributions. In 2020, it received R$ 348.00. I don’t even know these enlightened people who contributed,” explains Izídio dos Santos. About 1,600 people work on coffee farms in the municipality.ossui cerca de 1,6 mil trabalhadores em fazendas de café. Izídio dos Santos Cancelling membership A strategy to drive workers away from unions has been im- plemented in southern Minas Gerais, Brazil’s largest coffee producing hub. According to union leaders interviewed by Repórter Brasil, accounting firms hired by landowners write standard membership cancellation letters for workers, who just have to sign them and deliver them to their unions. Eliane dos Santos Their purpose would be to demobilize the category and weaken union work. “I’m not even sure if workers know what they are signing. When they come to bring the document here, we try to talk them out of it, but it’s no use. They already have their minds made up against the union,” says Eliane dos Santos, a union leader in of Ibiraci (MG). Roberto de Souza Costa, the president of the rural workers union in Ibiraci, explains: “Accounting firms tell them: ‘You don’t need the union anymore. If you need to terminate your contract, to retire, you don’t have to go to the union. What do you need the union for?’ Then, when harvest season ends, they settle everything within companies, which cheat on their employees, and then the workers come here with their termination papers signed without understanding anything. I show them they have accrued vacations and other unpaid benefits, and they ask me: ‘What should I do now?’ Then I show them their letters cance- lling union membership, and that’s when they realize it.” Standard membership cancellation letters . 15 .
WAGES DO NOT R$ 1,130.00. For 2021, the gover- nment established a minimum of forward, unfortunately.” On the other hand, the last har- PROVIDE FOR R$ 1,110.00 – R$ 2.00 below the vest was better than the previous LIVING INCOME figure corrected for inflation.38 one. Even with the novel corona- With the end of the government’s virus pandemic, international cof- A living wage is one that gua- minimum wage increase policy, fa- fee prices remained high in 2020, rantees workers’ autonomy and milies’ purchasing power has been varying between R$ 590.00 and R$ allow them to provide their fami- directly affected. 620.00 per sack.39 The pattern of lies with decent lives. According Registered workers in sou- rising prices remains in 2021. On to the Global Living Wage Coali- thern Minas Gerais – the largest January 8, arabica coffee was sold tion, a living wage includes food, coffee production hub in Brazil – at R$ 625.71 per sack.40 water, housing, education, health earn about one minimum wage. “Ten years ago, they used to sell care, transportation, clothing, and For employees who live within coffee at R$ 200.00 or R$ 280.00. other essential needs as well as coffee properties, around 20% is Workers were paid R$ 10.00 per provision for unexpected events. discounted to pay for rent, water measure. In 2020, coffee reached Few coffee producing muni- and electricity. R$ 612.00 and they still paid the cipalities have their own labour “What is left is something same R$ 10.00 per measure,” the collective agreements. When the- around R$ 800.00,” Jorge dos San- union leader says. re is such an agreement, the base tos estimates. “That’s not a salary “When we have hearings, em- salary is very close to the national that values your work so you can ployers often argue that the indus- minimum wage. In 2020, when improve your social situation, so try is undergoing a crisis, but what Brazil’s minimum wage was R$ you can progress in life. Just look happens when the industry makes 1,045.00, coffee workers used to at the outskirts of cities that pro- big profits? Weren’t they suppo- earn something between that and duce coffee. People are not going sed to provide more benefits?,” Aerial view of a coffee farm in São Sebastião do Paraíso (MG) . 16 .
prosecutor Soares asks. Rainforest Alliance and UTZ are Alfenas area. The organization es- In June 2020, certifier Rain- among the largest socio-environ- timated the gross living wage for forest Alliance developed a me- mental certifications in the world the south and southwest of the thodology for rural producers to and started merging in 2017. The state at R$ 1,629.00. At the time, know how far they were from op- new brand will retain only the for- the minimum wage – and the base timal earnings and could calcula- mer name. salary for workers in the industry – te what a living wage would be in In April 2016, the Global Living was R$ 788.00,42 that is, less than their towns.41 Paying living wages, Wage Coalition published a study half that amount. however, will not be a criterion for conducted in Minas Gerais muni- granting the certification label. cipalities around the Guaxupé and CASE STUDIES This chapter describes specific cases of labour irregularities and THE PROBLEMS passed on to the farm owner. While Maria Júlia Pereira was slave-like labour found in coffee not notified, workers interviewed In July 2018, an inspection ope- farms. Repórter Brasil investigated in November 2020 by Repórter ration found 15 people, including the connections between these Brasil claim she used to pay them. a 17-year-old teenager, working in properties and retail chains in Bra- They also say that the Córrego da slave-like conditions on the farm’s zil and abroad. Prata Farm was a supplier of cof- coffee harvest.44 At the time of the fee seedlings to be replanted on rescue, they told Repórter Brasil other properties belonging to her. that they used to work from 6 am CASE 1 – CÓRREGO to 10 pm. The group had come João*, 32 years old, was among the people rescued in 2018. He DA PRATA FARM from Minas Gerais’s Jequitinho- nha Valley area and they said that says the housing conditions were precarious. “When we got there, they had not have a single day off The Córrego da Prata Farm there was no house, there was no during the 90 days they worked in Muzambinho, southern Minas mattress. We had to buy every- there, and they only stopped har- Gerais, belongs to Maria Júlia Pe- thing,” he recalls. vesting coffee on rainy days. “And reira, who owns another coffee In addition to mattresses and if we stopped, the boss would get estate in Nova Resende, 37.5 km food, workers were forced to buy angry,” one of the workers said away from Córrego da Prata. She portable machines that help in during the inspection operation.45 is the former sister-in-law of Fe- harvesting coffee, incurring debts At the time of the rescue, the of R$ 2,500-R$ 3,000 before they deral Deputy Emidinho Madeira property was leased to Elias Rodri- even started harvesting. “Machi- (PSB). Madeira’s father Emídio go de Almeida, who was notified ne, maintenance, gasoline. We Madeira owns two coffee farms by the operation and included in also had to pay for food. I wasn’t where cases of slave labour were the “dirty list” in April 2020.46 Ac- registered either, and they had found in 2015 and 2016.43 cording to the inspection, he used promised formal contracts.” to keep 80% of the coffee produ- In addition to the slave labour ced while the remaining 20% were . 17 .
case, Maria Julia Pereira is a de- worked on the farm on a perma- visit the site and did not know how fendant in other labour-related nent basis. The lawyer explains it was managed,” he says. “You lawsuits. One of these lawsuits that proving workers’ claims is one can’t hold someone accountable was filed by a 42-year-old worker of the most difficult parts of the for something she wasn’t even named Marcelo.* According to his process. “It’s very hard to bring aware of.” report, he worked as a daily labou- witnesses in these cases. Some rer on the property from May 2018 people are afraid to testify becau- to June 2019. He used to perform se they think they won’t be able to CERTIFICATIONS several tasks such as planting cof- get a job afterwards.” fee seedlings, applying agrochemi- In 2019, Maria Julia Pereira’s cals, harvesting and doing mainte- Boa Vista/Coutinho Farm, in Nova nance in the property. When he was fired, he says, WHAT THE FARM Resende, was granted Starbucks’s C.A.F.E. Practices certification. The he was given his own work papers OWNER SAYS farm is part of a selected group of back, which the employer had certified properties that supply co- been keeping. However, only a 45- At the time of the rescue ffee to trading company Exporta- day period had been registered operation, in August 2018, Maria dora de Café Guaxupé, according on it, rather than the 13 months Júlia Pereira sent a note to to the company itself. he had worked on the farm as a Repórter Brasil, through her lawyer The Santa Rita das Paineiras permanent employee. In the law- Thiago Dini, in which she claimed Farm – Córrego da Prata’s new suit, the worker seeks acknowle- to have bought the farm in late name – has also held the UTZ cer- dgement of the employment re- 2016 and leased it in December tification since 2019. In April 2020, lationship for all months worked of the same year to Elias Almeida, Elias Rodrigo de Almeida, then the and payment of overtime. and that she was “unaware of any property’s lessee, was included in In addition to working unre- procedures and occurrences on the “dirty list” due to the 2018 sla- gistered, Marcelo* states that that property.” The lawyer, who ve labour case. his working hours were similar to also represents Almeida, said that those of workers rescued in 2018 he had “outsourced personnel” during the coffee harvest, with and that he was “a victim, just like the other workers.”47 In October SUPPLY CHAIN daily shifts of up to 12 hours. He used to earn R$ 1,045.00, 2016, Almeida signed a Conduct Maria Julia Pereira sells her the minimum wage for the cate- Adjustment Agreement with the farms’ coffee production to tra- gory, and claims he was never paid Labour Prosecution Service in ding company Exportadora de for overtime. “In most farms whe- Minas Gerais (MPT-MG).48 Café Guaxupé. The company re I lived, you’d get everything ri- In February 2021, Maria Julia confirmed that it bought her co- ght. Not there. Sometimes they’d Pereira’s lawyer reported to ffee from the Boa Vista/Coutinho pay half a month together with Repórter Brasil that the property Farms, in Nova Resende, in 2019, another month. It was always a continued to be managed by Elias and Santa Rita das Paineiras, in mess, confused,” he says. de Almeida until October 2019, Muzambinho, in 2020. In the lawsuit filed by Marce- when the lease agreement ended. The trading company also sta- lo* against Maria Júlia Pereira at After that, she resumed the ted that it has never sourced cof- the Labour Court of Guaxupé, the management of the farm, which fee from the farm where slave la- judge ruled in favour of the em- came to be called Santa Rita das bour was found. On an email, João ployer in November 2020. Paineiras. Her lawyer denies Paulo Custodio de Brito, head of According to Celso Antônio workers’ reports that Córrego the company’s Sustainability De- Barbosa Júnior, a lawyer repre- da Prata was jointly managed by partment, said: “We have never senting Marcelo,* during the hea- Elias de Almeida and Maria Júlia purchased coffee from the Córre- ring with the judge, the worker Pereira. “While the lease contract go da Prata Farm or from producer was unable to prove that he had was in force, Maria Júlia did not Elias Rodrigo de Almeida.” . 18 .
CASE 2 – THE 2019, 51 workers – including three teenagers aged 17, 14 and 13 – SUPPLY CASTELHANA AND were rescued from slave-like con- CHAIN ALVORADA DO ditions at the farm. They were also Ambos os fazendeiros são for- migrants, had no formal contracts, CANTA GALO and were paid less than the mini- Both farmers are suppliers of tra- FARMS mum wage. Still, they used to pay ding company Nutrade Comercial about R$ 300.00 per month for Exportadora, a member of the Nu- The Castelhana Farm is loca- rented rooms in town. The accom- coffee program – the name given ted in Monte Carmelo (MG) and modation was divided between to Syngenta’s coffee division. belongs to producer Diogo Tude- whole families and single workers. Diogo Tudela Neto made sales la Neto. The property has 1,200 There was no bathroom, to the company in August and No- hectares and produces an ave- drinking water or Personal Pro- vember 2020. That is, shortly after rage of 20,000 sacks of coffee a tective Equipment (PPE) at work labour inspectors found 81 unre- year. The Alvorada do Canta Galo fronts. There was no place to eat gistered workers on his farm. Farm is located in Campos Al- either. After the rescue, the em- Syngenta – Nutrade’s owner – tos, in the Upper Paranaíba area ployer signed an agreement with stated that it follows the case of (MG). Its owner is José Maria Do- the Public Prosecution Service Diogo Tudela Neto and that it pays mingos da Silva. (MPT) and paid R$ 363,000 as close attention to “the process of compensation for individual moral regularization by the producer and damages and R$ 500,000 for col- the possible developments and re- solutions of this case to be able to THE PROBLEMS lective moral damages.49 take the necessary measures.” José Maria Domingos da Sil- Both properties have under- gone inspections in the past two WHAT FARM va traded coffee with Nutrade in 2020 and 2019 – also after the years. Unregistered workers were OWNERS SAY inspection operation that found, found at Castelhana, among other in his case, slave labour. Regarding irregularities. At Alvorada do Can- Repórter Brasil contacted the this supplier, the multinational ta Galo, in turn, dozens of people Tudela Castelhana Coffee group stated that the case was closely were rescued from slavery. owned by producer Diogo Tudela monitored by Nucoffee in 2019. In July 2020, a team from the Neto by email and telephone but Syngenta also stressed that Silva Mobile Inspection Group of the received no reply until this report has not been included in the “dir- Minas Gerais Labour Superinten- was closed. We were unable to ty list” of slave labour and that it dence found 81 unregistered sea- hear producer José Maria Domin- continues to monitor the case. sonal workers at Castelhana. They gos da Silva. He was contacted by The “dirty list” is a federal re- had left the town of América Dou- Reuters after the rescue but decli- gister usually updated every six rada in Bahia to harvest coffee and ned to comment.50 months.51 It is now the main ins- had been working on the property trument used by companies to for 37 days without any payment. restrict trade relations with those The irregularities found at the site include unrecorded work hou- CERTIFICATIONS who use slave labour. The docu- ment lists the names of employers rs, charging for work tools such as gloves used in harvest, no paid The Castelhana Farm displays caught in government inspections committing the crime. They are weekly rest, and lack of toilets and UTZ and Rainforest Alliance logos on only included in the list after an its website. In response to Repórter washbasins at work fronts. Brasil, UTZ stated that the proper- administrative procedure reviews The inspection carried out at ty’s certification has expired. Its the inspection operation, which the Alvorada do Canta Galo Farm Rainforest Alliance license, in turn, guarantees their right of defence. took place a year earlier. In August has been suspended. José Maria Domingos da Silva’s . 19 .
administrative procedure has not been concluded yet. WHAT THE FARM SUPPLY CHAIN Asked by Repórter Brasil about OWNER SAYS When slave labour was found, the destination of the coffee ac- the producer was a member quired from both employers, the When the “dirty list” was dis- of the Cerrado Coffee Farmers trading company did not say which closed, Helvécio Sebastião Batista Cooperative (Expocaccer), one of customers the product was sold to. – owner and administrator of the Brazil’s largest coffee cooperatives Cedro II Farm – stated that the and exporters. charge of using slave-like labour In April 2019, Expocaccer sent CASE 3 – CEDRO II was not true. “It’s all false. These guys from the Ministry terrorize a note to Repórter Brasil informing FARM people who are creating wealth that it had suspended business operations with the producer and for this country,” Batista told Re- excluded him from all groups of The Cedro II Farm is located in pórter Brasil in April 2019.” My certified and non-certified coffee the Serra do Salitre area in the so- farm is certified. I hold Nespresso, producers.59 Consulted again for -called Triângulo Mineiro. Its ow- Starbucks, Rainforest, UTZ. All up the 2021 report, the company ner is Helvécio Sebastião Batista, to date.”55 confirmed that Helvécio Sebastião who has his own coffee brand – Batista is still suspended. Café Fazenda Cedro. The product was even marketed under a subs- cription-based club for specialty CERTIFICATIONS coffees,52 but the business rela- At the time of the inspec- tionship was interrupted in April tion, the Cedro II Farm held the CASE 4 – TERRA 201953 after his name’s inclusion Rainforest Alliance certification. on the “dirty list” of slave labour When the owner was included in FORTE GROUP came to light. the “dirty list,” the certifier infor- João Faria da Silva, owner of med Repórter Brasil that it would the Terra Forte Group, is conside- suspend his label. The Rainforest red one of the largest individual THE PROBLEMS Alliance label awarded to the Ce- coffee producers in the world. The dro II Farm was linked to a group São Paulo-based farmer owns Ter- In July 2018, an inspection certification granted by the Cer- ra Forte Importação e Exportação, operation at the Cedro II Farm rado Coffee Farmers Cooperative a group that operates in interna- found six workers in slave-like (Expocaccer).56 tional coffee trade, in addition to a conditions. There were no toilets, Helvécio Batista was also certi- warehouse and five coffee farms.60 drinking water or places to eat at fied by UTZ. The label, UTZ said at The company has faced financial the time, was granted to a proper- problems in recent years. It filed work fronts. They used to live in ty adjacent to Cedro II.57 for judicial recovery, which was poor hygiene conditions according Batista was also certified by approved in December 2020.61 to the inspectors that rescued Starbucks’s certification program them. Work shifts could last from C.A.F.E. Practices and supplied 6 am to 11 pm, often without any weekly paid rest.54 coffee to Nespresso, a brand con- trolled by multinational company THE PROBLEMS In addition to the six workers Nestlé. At the time, Nespresso in- While João Faria da Silva has rescued during the operation, la- formed Repórter Brasil that it had never been caught using slave bour inspectors found 19 other suspended coffee purchases from labour or committing serious la- people in slave-like conditions in the producer. In a statement, Star- bour irregularities, he is a central other properties managed by Hel- bucks said it would look into the character in a land conflict that vécio Batista. As a result of the case and, if the facts were confir- threatens the survival of about rescue at the Cedro II Farm, the med, its trade relationship with 450 families in Campo do Meio, owner was included in the “dirty the property could be suspen- southern Minas Gerais.62 list” of slave labour in April 2019. ded.58 . 20 .
The area has been occupied for session of part of the area and 14 Seasonal workers who live in the 22 years by family farmers and for- families were evicted. Plantations, Quilombo Campo Grande camp also mer employees of sugar company houses and a school were demo- report a series of labour irregulari- Usina Ariadnópolis Açúcar e Álcool lished after a court ruled in favour ties in the Terra Forte group’s farms S/A. The company used to be ma- of Jovane Moreira.64 in Campo do Meio. Luciana Ribeiro naged by Companhia Agropecuária At the same time, the business- Amorim, 47 years old, and Gisele Ro- Irmãos Azevedo (Capia), which fi- man leased the area occupied by the drigues, 23, worked in coffee harvest led for bankruptcy in 2002 without landless workers to coffee producer at the Campo Verde Farm. They say paying its labour duties. Six years João Faria da Silva. The contract be- that there was no toilet, no water earlier, when its activities were sus- tween them grants part of the 4,000 to wash their hands and no place to pended, former employees occu- hectares of the mill’s total area for change clothes near the plantation. pied the area and the Landless Rural coffee and sugar cane plantations.65 Employees had to buy Personal Pro- Workers Movement (MST) estab- Two of the seven farms belonging to tective Equipment (PPE) themselves. lished the Quilombo Campo Grande the Terra Forte group – the Campo “They used to give us only rakes, sie- camp on the site.63 Verde Farm, with 1,056 hectares, ves and protection glasses,” recalls Since then, businessman Jovane and the São José do Indaiá Farm, Luciana Amorim. “If you wanted de Souza Moreira, manager of the with 620 hectares – are adjacent anything else, you had to buy it. They bankruptcy estate of the Ariadnó- to the camp.66 The agreement be- won’t give you gloves; they won’t polis sugar mill, has been fighting in tween Silva and Moreira was used give you anything to protect your court to evict the families. In August by the judge to justify the eviction legs and hands.” this year, a court ordered the repos- that occurred in August this year. Aerial photo of ruins of the plant that originated the MST occupation in Campo do Meio (MG) . 21 .
Gisele Rodrigues and Luciana Amorim Gisele Rodrigues recalls that the payment per measure of CERTIFICATIONS In the case of Rainforest Allian- ce, the certification granted is of harvested coffee is only revea- The Terra Forte group displays the Chain of Custody type, which led at the end of the working at least four certifications on its allows Terra Forte to handle and week, which made it impossible website. One of them is Starbu- market coffee from certified far- for workers to know how much cks’s C.A.F.E. Practices. In an inter- ms. Terra Forte is also registered they were working for. “You work view with Repórter Brasil in Sep- as an intermediate buyer of coffee on coffee for a whole week and tember this year,67 Megan Lagesse, certified by German label 4C, whi- only afterwards you’ll know what the company’s communications ch stands for Common Code for your payment is,” she says. “For and PR manager for Latin America the Coffee Community. According each measure, which is 60 litres, and the Caribbean, said that Terra to 4C director Gustavo Bacchi, he’d say a different value. For Forte is certified to sell coffees to no batch of 4C coffee was traded example: you worked on a group the company and has farms certi- by Terra Forte in 2019 or 2020. of plants and he’d paid you R$ fied by the program, but she did 17.00 in one place and then R$ 10.00 in another. The maximum not reveal the properties’ names. In addition to Starbucks’s cer- SUPPLY he’d pay there was R$ 18.00.” tification, João Faria’s business CHAIN group also holds good practice la- WHAT THE bels from UTZ, Rainforest Alliance In addition to plantations, and 4C. UTZ had granted its label to the Terra Forte group directly ex- COMPANY SAYS the Campo Verde Farm in April this ports the product grown on its year. After Repórter Brasil’s con- farms, as well as coffee purcha- Repórter Brasil tried contact the tact, the organization decided to sed from other rural producers. Terra Forte group by phone and email suspend the certification.68 Accor- The company has been one of about workers’ claims to the repor- ding to its representatives in Bra- the largest Brazilian coffee ex- ters but never received any replies zil, the documents provided by the porters in the past ten years. Its to its questions. The company did certifier hired to audit the farm do warehouses in São Paulo and Mi- not provide any stance on the land not mention conflicts in the area nas Gerais can store hundreds conflict in Campo do Meio either. next to the property. Certification of thousands of coffee sacks. will remain suspended until an in- The previous chapter provided ternal investigation is completed. a list of cases of rights violations re- . 22 .
ROASTERS lated to suppliers of major trading companies operating in Brazil – Ex- NKG UCC portadora de Café Guaxupé, the On an email to Repórter Brasil, The British subsidiary of UCC Nuccoffe program (Syngenta group), NKG confirmed its business rela- replied by email that it had no the cooperative Expocaccer, and Ter- tionship with Nucoffee, Expocaccer direct relationship with and did ra Forte group. All of them operate and Exportadora de Café Guaxupé, not deliberately purchase co- in the foreign coffee trade and have but it claimed that no company in ffee produced on the proper- customers in the European market. the group has knowingly bought co- ties mentioned in this report. Repórter Brasil identified the ffee from the properties mentioned The company explains that trade relationship between these ex- in this report. “NKG’s local trading green coffee beans originating in porters and important brokers/roas- partners in Brasil have assured that Brazil are purchased by UCC Co- ters based in Europe. Through them, they don’t trade with coffee from ffee Services Switzerland – the coffee beans are processed and pre- producers that are on the “lista suja,’” group’s subsidiary in Switzerland. pared to be sold in the retail market. the company’s statement adds. This company’s suppliers, in turn, According to 2019 and 2020 cus- A world leader in green coffee include agribusinesses and glo- toms records, Exportadora de Café services, NKG claims to be commi- bal commodity traders that have Guaxupé supplied coffee during that tted to “eliminating forced labour “their own business controls and period to German multinational and any other form of labour ri- policies to mitigate risk in their Neumann Kaffee Gruppe (NKG),69 ghts violations within [its] sphere supply chain,” which follow the which operates in several stages of of influence” and to require its su- multinational’s Code of Conduct.75 the supply chain. It also supplied ppliers to follow the guidelines of “The green coffee supply chain German roaster Melitta70 and Swiss the company’s Code of Conduct.73 is complex, and in some coffee and German subsidiaries of UCC71 – a growing countries and the agri- multinational group based in Japan. culture sector, there are inhe- Nucoffee, in turn, supplied co- ffee to green coffee bean buyer Su- MELITTA rent social risks and vulnerabili- ties. Brazil is one of the largest calina.72 Like Guaxupé, it also traded coffee producing countries in the coffee with the aforementioned NKG The Melitta group said it strictly world and faces its own social, group and European subsidiaries of follows controls, protocols and ru- economic and environmental roaster UCC. les intended to guarantee quality challenges,” says an excerpt from The cooperative Expocaccer is and reliability in the entire process the note sent to Repórter Brasil. another company that supplied of coffee production and supply. “We are committed to ethical coffee to NKG, UCC and Sucafina. As for the properties and produ- business practices and mitigating According to 2019 customs re- cers mentioned, they replied only risks in our supply chain within cords, Terra Forte also traded its that Exportadora de Café Guaxu- our sphere of influence. We are production with UCC. pé is one of its suppliers and has confident in our practices and bu- Repórter Brasil contacted the- subscribed to its Code of Conduct.74 siness controls and […] will conti- se four importers about the cases According to an email sent nue to develop these to support investigated and that involve their by spokespersons for the Melitta the sustained eradication of glo- supplier networks. The companies’ group, “violation of principles and bal human rights abuses,” it adds. stances are presented below. values stated in the code can result in excluding the supplier from our list of approved suppliers for coffee.” . 23 .
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